CPP EXAM SCRIPT PREMIUM QUESTIONS
AND SOLUTIONS GRADED A+
●● Nondiscretionary bonus
Answer: Nondiscretionary bonus -Nondiscretionary bonus is a
contractual or agreed-upon bonus or incentive. Nondiscretionary
bonuses paid to nonexempt EE's ARE included in the regular rate of pay
in the week earned
●● Workweek
Answer: Any fixed, recurring period of 168 consecutive hours (7 days
times 24 hours = 168 hours).
●● What is an IRS lock in letter?
Answer: IRS lock in letterIRS letter tells an ER how to with hold FIT
form an EE no mater what was submitted on W-4 Form
●● When must IRS lock in letter be put in?
Answer: IRS lock in letter time45-60 days is when it must be
implemented and usually has the IRS lock in letter time45-60 days is
when it must be implemented and usually has the date in the letter date
in the letter
●● FLSA highly compensated employee:
,Answer: FLSA highly compensated employee-AN EXEMPT HIGHLY
COMPENSATED EMPLOYEE UNDER THE FLSA IS AN
EMPLOYEE WHO MEETS ONE OF THE DUTIES TESTS FOR
EXECUTIVE, ADMINISTRATIVE OR PROFESSIONAL
EMPLOYEES AND HAS ANNUAL COMPENSATION OF
$107,432FLSA
●● Four types of exempt employees: APES
Answer: THE FOUR WHITE COLLAR TYPES OF EXEMPT
EMPLOYEES ARE ADMINISTRATIVE, EXECUTIVE,
PROFESSIONAL, AND OUTSIDE SALES.
●● Professional EE's primary duties-
Answer: An exempt professional employee is either a learned or creative
professional. Learned professionals work requires advanced knowledge.
Creative professionals work involves invention or talent.
●● What amount can tipped ee's be paid?
Answer: Tipped EE's may be paid NO LESS than $2.13 per hour.
●● When must a W4 be completed?
Answer: New hires or FIT will be single and no other adjustments.
Others when their tax liabilities increase.
●● Executive EE's primary duties?
,Answer: The management of the business, direction 2 or more full-time
ee's, the authority to recommend hiring and firing.
●● What is the W4-S form?
Answer: Its for Sick pay FIT with holding, allows EE's the ability to
request income tax with holding from third-party sick pay.
●● If no W4-S form is received, how is FIT handled?
Answer: No federal income tax with be withheld.
●● What is the W4-P?
Answer: Withholding for Pension or annuity payments. If not received
then with hold as single no other adjustments.
●● When is an amended W4 Implemented?
Answer: When EE submits an amended W4 - must be implemented with
the first payroll no later than 30 days after form is submitted.
●● How can W4 be made invalid?
Answer: When there are any alterations, additions or deletions to the
form. Claiming a flat dollar or percentage. Verbally
●● What does exempt W4 form mean?
, Answer: EE submits an exempt W4, the EE will have no FIT with held
for remainder of year. The form expires on 2/15 of the year after it was
submitted.
●● What is a W4?
Answer: Employees withholding certificate for federal income tax.
●● What is the minimum weekly salary Exempt Employees?
Answer: FLSA - White Collar Exemptions rules, must be paid a
minimum salary of $684 per week. Teachers, lawyers and attorneys are
not required to be paid a salary.
●● What is the reasonable basis test?
Answer: Reasonable basis test allows a worker classified as an employee
under the common law test to be treated as an independent contractor.
●● When are meal periods time worked?
Answer: A meal period that is not at least 30 minutes of uninterrupted
time is time worked under the FLSA.
●● Engaged to be waiting
Answer: Time worked because the employer requires the employee to
wait to begin work
AND SOLUTIONS GRADED A+
●● Nondiscretionary bonus
Answer: Nondiscretionary bonus -Nondiscretionary bonus is a
contractual or agreed-upon bonus or incentive. Nondiscretionary
bonuses paid to nonexempt EE's ARE included in the regular rate of pay
in the week earned
●● Workweek
Answer: Any fixed, recurring period of 168 consecutive hours (7 days
times 24 hours = 168 hours).
●● What is an IRS lock in letter?
Answer: IRS lock in letterIRS letter tells an ER how to with hold FIT
form an EE no mater what was submitted on W-4 Form
●● When must IRS lock in letter be put in?
Answer: IRS lock in letter time45-60 days is when it must be
implemented and usually has the IRS lock in letter time45-60 days is
when it must be implemented and usually has the date in the letter date
in the letter
●● FLSA highly compensated employee:
,Answer: FLSA highly compensated employee-AN EXEMPT HIGHLY
COMPENSATED EMPLOYEE UNDER THE FLSA IS AN
EMPLOYEE WHO MEETS ONE OF THE DUTIES TESTS FOR
EXECUTIVE, ADMINISTRATIVE OR PROFESSIONAL
EMPLOYEES AND HAS ANNUAL COMPENSATION OF
$107,432FLSA
●● Four types of exempt employees: APES
Answer: THE FOUR WHITE COLLAR TYPES OF EXEMPT
EMPLOYEES ARE ADMINISTRATIVE, EXECUTIVE,
PROFESSIONAL, AND OUTSIDE SALES.
●● Professional EE's primary duties-
Answer: An exempt professional employee is either a learned or creative
professional. Learned professionals work requires advanced knowledge.
Creative professionals work involves invention or talent.
●● What amount can tipped ee's be paid?
Answer: Tipped EE's may be paid NO LESS than $2.13 per hour.
●● When must a W4 be completed?
Answer: New hires or FIT will be single and no other adjustments.
Others when their tax liabilities increase.
●● Executive EE's primary duties?
,Answer: The management of the business, direction 2 or more full-time
ee's, the authority to recommend hiring and firing.
●● What is the W4-S form?
Answer: Its for Sick pay FIT with holding, allows EE's the ability to
request income tax with holding from third-party sick pay.
●● If no W4-S form is received, how is FIT handled?
Answer: No federal income tax with be withheld.
●● What is the W4-P?
Answer: Withholding for Pension or annuity payments. If not received
then with hold as single no other adjustments.
●● When is an amended W4 Implemented?
Answer: When EE submits an amended W4 - must be implemented with
the first payroll no later than 30 days after form is submitted.
●● How can W4 be made invalid?
Answer: When there are any alterations, additions or deletions to the
form. Claiming a flat dollar or percentage. Verbally
●● What does exempt W4 form mean?
, Answer: EE submits an exempt W4, the EE will have no FIT with held
for remainder of year. The form expires on 2/15 of the year after it was
submitted.
●● What is a W4?
Answer: Employees withholding certificate for federal income tax.
●● What is the minimum weekly salary Exempt Employees?
Answer: FLSA - White Collar Exemptions rules, must be paid a
minimum salary of $684 per week. Teachers, lawyers and attorneys are
not required to be paid a salary.
●● What is the reasonable basis test?
Answer: Reasonable basis test allows a worker classified as an employee
under the common law test to be treated as an independent contractor.
●● When are meal periods time worked?
Answer: A meal period that is not at least 30 minutes of uninterrupted
time is time worked under the FLSA.
●● Engaged to be waiting
Answer: Time worked because the employer requires the employee to
wait to begin work
